(NAPSI)-Ifyouíre like most homeowners, youíve
taken care of your house over the years; now, it seems, your house may help
take care of you. Itís due to the reverse
mortgage, a government-insured home loan program that lets those 62 and older
leverage the equity in their house while eliminating monthly mortgage
payments.

How It Works

It works like this: A portion of the equity in the home is converted to
tax-free cash. The homeowner no longer makes a monthly payment but continues
to pay any applicable taxes and insurance. When the home is sold, the
proceeds go toward paying off the reverse mortgage and any remaining cash is
kept by the former homeowner.

There are some restrictions, such as the youngest homeowner must be 62
years of age and have equity in the house. However, unlike traditional,
forward mortgages, credit scores and income requirements are not a factor
with reverse mortgages.

ìReverse
mortgages are a fantastic option for folks 62 or older with equity in their house,î said Jay Farner,
CEO of One Reverse Mortgage, a leading national reverse mortgage lender. ìHowever, there are a number of misconceptions
that keep some people from seriously considering a reverse mortgage.î

Truth vs. Myth

The largest concern people considering a reverse
mortgage have seems to be that the bank or government will own their
home. That belief is totally false.

ìI had heard
that the government would own my home and I was afraid Iíd
have to give out too much personal information,î
said Ann Medeiros, 63. ìBut
I was completely wrong. My home needed a lot of repairs and I was able to
make them with the money from my reverse mortgage. Now Iíll
be able to continue to live in this home for the rest of my life.î

Many Americans are finding that reverse mortgages allow them to supplement
retirement accounts that have been dwindling since the economic downturn.

ìWeíve
been able to help clients defer taking their Social Security benefits,
postpone IRA and 401(k) disbursements, and even had cases where homeowners
were days away from losing their house and, through a reverse mortgage, were
able to not only keep their home but eliminate a monthly payment and have
tax-free cash for future expenses,îFarner added.

If you feel like you might benefit from a reverse mortgage, find a
reputable lender who will take the time to understand your financial position
and goals and give you an honest opinion. Reverse mortgages are just one of
many options.